Absa | Use FlexiReserve to get extra cash in your home loan

Flexi Reserve is a facility that allows you to access available funds that you’ve paid into your Home Loan over and above your monthly repayments. Your extra payments will reduce the outstanding balance on your Home Loan Account, saving you interest over the term of the loan.

Key features and benefits of Flexi Reserve

Save on interest

Pay less interest because your extra payments reduce the outstanding balance of your Home Loan.

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Get extra cash

Transfer your extra payments to your Transactional Account with Flexi Reserve.

Pay it off sooner

If you don't withdraw your extra payments from your Flexi Reserve facility, you can pay off your Home Loan sooner.

All your Flexi Reserve questions answered

Do I need to apply to have a Flexi Reserve activated on my Home Loan Account to access available prepaid funds?
You will be granted a Flexi Reserve facility on your Home Loan Account.

If you don't have a Flexi Reserve facility, you can apply to get one at any time.

You can still make extra payments into your account, but will only be able to withdraw the available funds once your Flexi Reserve facility is activated.
How do I access the available funds in my Flexi Reserve?
You can transfer available Flexi Reserve funds from your Home Loan Account to your linked Absa Transactional Account.

You can do this using your Absa Banking App or Absa Online.

You cannot pay a third party directly from your Home Loan Account. You’ll first have to transfer the amount that you need to your transactional account.

You can withdraw a minimum of R1 000 per transaction.
Will I always be able to withdraw all the funds that I have prepaid into my Flexi Reserve?
The bank will calculate the amount that can be made available for withdrawal from your Flexi Reserve, which may be less than the total prepaid amounts paid. The amount to be made available for withdrawal is calculated to ensure that when your Home Loan repayment is recalculated after withdrawal, it does not exceed your original contracted mortgage loan repayment. In addition, this calculation ensures that if you withdraw the maximum amount made available to you, you will be able to afford the recalculated monthly repayment over the remaining term of your mortgage loan. Your Home Loan repayment will be adjusted as interest rates increase or decline over the remaining term of your Home Loan Account.

If any linked MultiPlan Accounts are in arrears, your Flexi Reserve will be suspended on all accounts until all accounts have been brought up to date and after a period of two months. Your Flexi Reserve facility should not be used to repay your monthly Home Loan repayments. You must ensure that you continue to keep up with the monthly repayments which are due on your Home Loan Account.
I need to get more funds than what I have in my FlexiReserve. What do I do?
You have two options:

Apply for a Re-Advance:

You can have access to funds by taking your existing Home Loan back to its original loan amount. You will be able to apply for funds that you have already paid towards your Home Loan Account. There are no bond registration attorney fees payable.

Apply for a Further Advance:

You can borrow additional funds due to the increased value on your property. You’ll need to register an additional bond as security to cover this increased loan amount. This will incur bond registration attorney costs.

Terms and conditions apply, subject to credit and affordability assessments and property valuation.
Why can’t I find my home loan account on my Absa Online banking profile?
If you are the only participant on your Home Loan Account, this may be because you haven’t linked your Home Loan Account to your Absa Online profile. To do this

Log in to Absa Online.

Click on Full service.

Click on the Profile tab.

Select Link/Unlink accounts.

You can also get in touch with Absa Digital Banking Services on 08600 08600 and select option 1.

If you have a joint Home Loan Account, this may be because you haven’t been granted POA by all participants on your joint Home Loan Account.
I have a joint Home Loan Account. Who can withdraw from our Flexi Reserve facility?
All participants to a Home Loan can jointly withdraw from your Flexi Reserve at a branch, where all participants of the Home Loan are present.

Alternatively, to assist customers who cannot go to a branch at the same time, we can recognise authorisation provided by all participants to a joint Home Loan (principal/principals) to another (agent) in the form of a power of attorney (POA), provided that the POA is valid and enforceable.

Once the POA has been accepted, the joint Home Loan Account will be linked to the participants’ transactional account, whereafter available funds may be transferred from the facility to the transactional account.
My Home Loan Account is linked to my Absa Online profile, but I can’t transfer any available funds from the Flexi Reserve?
You can call us on 0860 111 007 to activate your Flexi Reserve to enable transfer of available funds from your Home Loan Account to your linked Absa Transactional Account.
I don’t want to use my Flexi Reserve, because I want to pay off my Home Loan sooner. What do I do?
You can call the Absa Home Loans Call Centre on 0860 111 007 or email home@absa.co.za and ask for your prepaid funds to be capitalised.

Once they’re capitalised, we will recalculate your new repayment based on the new reduced outstanding balance and the remaining term of your loan.

Once the repayment has been reduced, you will need to continue to pay more than your new minimum repayment amount to pay off your Home Loan sooner.

Note that when you request the bank to capitalise your prepaid funds, you will not have any Flexi Reserve funds available to withdraw if the need arises in the future.

As you accumulate prepaid amounts in your Flexi Reserve facility, remember to contact the bank to request for the amounts to be capitalised to not have access to withdraw the amounts in the future.
I’ve gone into arrears on my Home Loan Account, and I’ve chosen to go for a short-term plan. Will I still be able to use my available Flexi Reserve funds?
No, you will not be able to use your available Flexi Reserve funds during the agreed short-term plan period as well as the 12-month monitoring period after the expiry of the short-term plan.
What happens to my available Flexi Reserve funds when I have settled my Home Loan Account before the end of the term?
In this case, your Home Loan Account will reflect a zero balance, but with available funds under Flexi Reserve.

You will have access to available funds in your Flexi Reserve if the available amount is more than R1 000 and you have more than two months remaining on the term of your Home Loan.

If the available funds in your Flexi Reserve is less than R1 000 or you have less than two months remaining on the term of your Home Loan, you’ll have to request for cancellation of your mortgage bond(s) and closure of your Home Loan Account.

It is advisable that you cancel your mortgage bond(s) to have possession of the title deed(s) to your property. Absa insurance premiums (if collected from your Home Loan Account), will continue to be debited to your Home Loan Account until you have cancelled your mortgage bond. The monthly service fee is still payable even though the loan has been settled. If you pay your repayments via debit order, the debit order will be adjusted to collect the monthly service fees.